1

Appliance and Equipment Labeling and Efficiency

Standards

Presentation at the United Nations Learning CenterMay 3, 2006

Steven NadelAmerican Council for an Energy-Efficient Economy

Washington, DC

Outline

• Appliance energy use• Opportunities for savings• Barriers to appliance efficiency• Labeling • Standards• Steps in establishing a program• Conclusion

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U.S. Residential Energy Use

31%

13%

12%

12%

9%

5%

5%

4%1%4% 4%

Space Heating

Water Heating

Space Cooling

Lighting

Refrigeration

Wet Clean

Electronics

Cooking

Computers

Other

Adjust to SEDS

Source: EIA, 2002 RECS

Appliance Ownership in China

0

20

40

60

80

100

120

140

160

180

200

1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

Units

per

100

Hou

seho

lds

Fans

B & W TV Sets

Color TV Sets

Clothes Washers

Refrigerators

Room Air Conditioners

Electric Cooking Utensils

0

20

40

60

80

100

120

140

160

1978 1985 1987 1989 1991 1993 1995 1997 1999 2001

Units

per

100

Hou

seho

lds

Fans

B & W TV Sets

Color TV Sets

Clothes Washers

Refrigerators

Urban Rural

Source: LBL, China Energy Databook, 2004 edition

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Energy, Economic and Emissions Savings from U.S. Standards

Net Benefit ($Billion)

2000 2010 2020 2000 2010 2020 2000 2010 2020 2000 2010 2020 Thru 2030

1987 NAECA 8.0 40.9 45.2 0.21 0.55 0.61 1.4 14.9 16.5 3.7 10.0 10.1 46.3

1988 Ballasts 18.0 22.8 25.2 0.21 0.27 0.29 5.7 7.1 7.9 4.4 5.0 5.0 8.9

1989&91 NAECA updates 20.0 37.1 41.0 0.23 0.43 0.47 3.6 6.9 7.7 4.8 8.1 8.1 15.2

1992 EPAct (lamps, motors, etc) 42.0 110.3 121.9 0.59 1.51 1.67 10.1 26.2 28.9 11.8 27.5 27.9 84.2

1997 Refrigerator/freezer update 0.0 13.3 28.0 0.00 0.13 0.28 0.0 1.7 3.6 0.0 2.9 5.5 5.9

1997 Room Air Conditioner update 0.0 1.3 2.1 0.00 0.01 0.02 0.0 1.0 1.6 0.0 0.3 0.4 0.6

2000 Ballasts update 0.0 6.2 13.7 0.00 0.06 0.13 0.0 1.8 3.0 0.0 1.3 2.7 2.6

2001 Clothes Washer Update 0.0 8.0 22.6 0.00 0.11 0.28 0.0 1.3 6.1 0.0 2.2 5.4 15.3

2001 Water heater update 0.0 2.5 4.9 0.00 0.08 0.13 0.0 1.5 3.6 0.0 1.4 2.2 2.0

2001 Central AC&HP update 0.0 10.7 36.4 0.00 0.11 0.35 0.0 3.5 41.5 0.0 2.3 7.2 5.0

2005 EPAct 2005 0.0 14.7 53.0 0.00 0.21 0.65 0.0 5.8 23.9 0.0 3.7 11.5 47.5

TOTAL 88 268 394 1.2 3.5 4.9 21 72 144 25 65 86 234

% of projected U.S. use 2.5% 6.9% 9.1% 1.3% 3.1% 4.0% 2.8% 8.3% 15.1% 1.7% 3.6% 4.4%

Enact Year Standards

Electricity savings(TWh/yr)

Primary energy savings (Quads/yr)

Peak load reductions (GW)

Carbon Reductions(MMT)

Source: ACEEE, “Leading the Way”, 2006

Recommended Standards in Thailand

• Refrigerators– Tier 1: 11% savings 1-door, 19% 2-door– Tier 2: 17% savings 1-door, 30% 2-door

• Split Air Conditioners– 9.6 EER (~10% avg. savings)

• Fluorescent ballasts– Restrict losses to require low-loss ballasts (saves ~40%)

• Electric motors– Tier 1at worldwide “standard” efficiency level (saves ~ 2%)– Long-term goal of worldwide “high efficiency level (saves ~5%

more)• Fluorescent lamps

– Maximum wattage limits for fluorescent tubes (saves ~10%)– Quality standards for CFLs (eliminate junk that leads to unhappy

customers)

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Barriers to Appliance Efficiency

• Lack of information -- consumers (and often salespersons) don’t realize variations in efficiency and which are most efficient products

• Third party decision-makers – landlords, builders• Efficient products may not be readily available at

time of purchase (e.g. panic purchases)• High prices

– Bells and whistles– Niche products

Appliance Labeling

• Provides consumers comparative information between products

• Best labels:– Encourage consumers to purchase most

efficient products– Encourage manufacturers to upgrade products

• Compete for best products• Avoid worst products

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Informational Label

Categorical Labels

Figure 1. EuropeanAppliance Label

Figure 2. AustralianAppliance LabelFigure 2. AustralianAppliance Label

Figure 3. ThaiAppliance LabelFigure 3. ThaiAppliance Label

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Endorsement Labels

U.S.Brazil

Experience with Categorical Labels

• EU: refrigerator efficiency increased by 27% from 1990 to 1999 after labeling program started

• Australia: efficiency improvements of 1% to 16% for labeled product categories from 1986 to 1992

• Thailand: – Market share of efficient ACs grew from 19% in 1996

to 38% in 1998– Efficient refrigerators up from 10% market share before

the label to 92% in 1998.

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Proposed Combined Label

Equipment Efficiency Standards

• Surmount barriers• Remove inefficient products from market• Leave wide range of products and product

attributes to choose from• Based on levels of efficiency that are cost-

effective to most consumers

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Initial Products Subject to U.S.Federal Standards

* DOE to determine if standards justified and appropriate level

Standards Added in the Energy Policy Act of 2005

Unit heaters

Traffic signals

Refrigerators and freezers (packaged)

Pre-rinse spray valves

Pedestrian traffic signals

Mercury vapor lamp ballasts

Ice-makers (cube type, 50-2,500 lbs/day)

Fluorescent lamp ballasts (F34 and F96ES types)

Exit signs

Distribution transformers (low voltage)

Clothes washers

Air-conditioners and heat pumps (unitary equipment 240–760k Btu/hr)

Commercial and Industrial

Torchiere lighting fixtures

Compact fluorescent lamps

Dehumidifiers

Ceiling fan light kits

Residential

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Impact of U.S. Standards on Product Efficiency

20

30

40

50

60

70

80

90

100

110

1972 1976 1980 1984 1988 1992 1996 2000

Year

Inde

x (1

972

= 10

0)

Refrigerators

Central A/C

Gas Furnaces

Effective Dates of National Standards

=

Effective Dates of State Standards

=

Source: ACEEE

Impact on Product Prices(central air conditioners)

500

550

600

650

700

750

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Year

Val

ue p

er U

nit (

$199

6)

Standard takes effect for some products

Standard takes effect for most products

Source: ACEEE analysis based on Census data.

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Countries with Mandatory Standards (# products)

• U.S. (32)• Canada (20)• Taipai (12)• Russia (9)• Brazil (1)• Israel (11)• Australia (9)• New Zealand

(8)• China (16)• Malaysia (1)

• Norway (4)• EU (4)• Korea (12)• Jamaica (3)• Czech

Republic (4)• Philippines

(3)• Thailand (1)• Mexico (10)• Poland(4)

• Costa Rica (8)• Columbia (8)• Hungary (2)• Iran (8)• Venezuela (2)• Saudi Arabia

(1)• Ghana (1)• Egypt (4)• Tunisia 1)

Source: CLASP with ACEEE revisions for U.S. and China

Products Covered by Standards (# of countries)

• Refrigerators (22)• Freezers (20)• Room AC (20)• Fluorescent ballasts

(13)• Lamps (12)• Electric motors (12)• Water heaters (11)

• Boilers (9)• Clothes washers (7)• Ranges/ovens (6)• Dishwashers (4)• Space heaters (4)• Chillers (3)• Fans (3)• Furnaces (3)• Many at (2) or (1)

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Products Covered by Chinese Standards

• Refrigerators• Room air conditioners• Clothes washers• Fans• Rice cookers• Televisions• Single-package AC• Chillers• Ventilation fans

• Fluorescent lamps (tubes & CFLs)

• Fluorescent ballasts• HPS lamps & ballasts• Electric motors• Industrial pumps• Air compressors• Water heaters, external

power supplies and distribution transformers close

Steps to Develop Labels and Standards

• Law/authority• Test standards• Test lab• Data compilation• Analysis and market research• Labels• Initial standards• Revisions to standards• “Reach” standards

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Conclusions

• Large opportunity to save energy and money with more efficient appliances and equipment

• Standards probably the most effective policy to capture these savings– Adopted in ~30 countries

• Labels (particularly categorical) are a useful complement

• Developing standards and labels first requires equipment test procedures, testing, and compilation of a database of equipment performance.